Answer Happy

Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales. 75 percent collected in the month of sale. 15 percent collected in the first month after sale. 5 percent collected in the second month after sale. 4 percent collected in the third month after sale. 1 percent uncollectible. The sales on account have been budgeted for the last seven months as follows: June July August September October November December $127,500 155,000 1. 2 180,000 210,000 235,000 260,000 222,500 Required: 1. Compute the estimated total cash collections during October from credit sales. 2. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter. Answer is complete but not entirely correct. Total cash collections Total cash collections $ 222,950 $696,925 x